NYSE:MA

Mastercard Inc. (MA)

491.08
+9.32 (1.93%)
as of Jun 5, 2026, 8:00:00 pm Market Open.
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Investor Insights
star iconJun 7, 2026, 12:00 am

This summary was created by AI, based on 19 opinions in the last 12 months.

Mastercard Inc. is viewed favorably by multiple experts who highlight its strong fundamentals, durability in the payments space, and the long-term growth potential of digital transactions. Despite short-term fluctuations and fears over the impact of digital currencies and stablecoins, experts largely agree that Mastercard, alongside its counterpart Visa, remains a solid investment opportunity. The company is benefiting from the global shift away from cash and maintaining strong revenue growth, with estimates of earnings increasing by 10-15%. Though some analysts recommend waiting for a better entry point due to current valuations and recent declines, the overall consensus emphasizes that any dips present a buying opportunity, reinforcing Mastercard's position as a high-quality asset in the credit services sector. With limited competition and a robust business model, Mastercard is well-positioned for future growth.

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Consensus
Positive
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Valuation
Fair Value
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Similar
Visa, V
PAST TOP PICK
(A Top Pick March 11/09. Up 69.1% excluding dividends.) Competes very well against Visa (V-N), its major competitor.
PAST TOP PICK
(Top Pick Mar 11/09, Up 52.87%) Not as cheap as it was, but still good value.
BUY
Very good moneymaking machine. Riding along the 50-day moving average and not falling below it. You could also look at Capital One Financial (COF-N) or American Express (AXP-N).
PAST TOP PICK
(A Top Pick Dec 19/08. Up 58.2% excluding dividends.) Multiple has gone up to 18 X earnings so it's approaching a level where he is starting to get cautious.
DON'T BUY
A little bit overvalued. Not a compelling opportunity.
DON'T BUY
Trading at 18X forward earnings and 40X price to cash flow. He would prefer about 12X forward earnings.
DON'T BUY
Visa (V-N) and MasterCard (MA-N) make money on fees they charge merchants. (Also have debit cards in Europe and US but not in Canada.) Transaction oriented companies, so if you think retail sales are going to pick up then you will want to own but if the consumer is tapped out and trying to get out of debt (which he thinks) then you don't want to be there right now. His preference would be towards Visa because of its stronger international name.
BUY
Between Visa (V-N) and MasterCard (MA-N), MasterCard is the cheaper of the stocks from a valuation standpoint. Both of these companies are in the right spot. There will be a huge increase in the use of debit cards and both companies have a huge position in this area.
TOP PICK
The key thing is there is no credit risk. Really a processor of transactions. As we move from a cash society this will get more and more business.
COMMENT
Stock has held up well and has started to build a base. There is a thought that this type of credit is starting to be used a bit more. Short term moving average was around $148. When it starts to improve, it should get above the short term moving average and then above the long-term.
TOP PICK
Numbers are very, very impressive. Trading at about 14X earnings. Sticking to their 20% earnings growth target for 2009.
DON'T BUY
MasterCard (MA-N) and Visa (V-N) are phenomenal franchises and basically a global duopoly. Not tied to spending but transaction growth. PE multiple for both companies is somewhere in the mid-20s, which is very rich. On a 5-year time horizon, they will grow into that multiple. Would consider buying at a sub-20 PE.
DON'T BUY
Based on their last quarterly report, his model price is $113.27. This gives a -52% differential.
DON'T BUY
A darling of Wall Street since it became public. Their business did well when the economy was accelerating, Consumer is now under a lot of pressure and we are in the early innings on this consumers’ recession. Expect they will continue to miss numbers for quite a few quarters.
PARTIAL SELL
Way overvalued. If you own and haven't taken profits yet, he would take at least half profits at this point.
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